NEXIF RATCH Energy has announced the successful financial close and the commencement of construction of its 74 MWp ground-mount solar photovoltaic project located in Calabanga, the Philippines.
The Calabanga project is being implemented by the company’s Philippines’ subsidiary, Calabanga Renewable Energy, Inc., and will sell about 85% of the generated energy through a power supply agreement with two subsidiaries of AboitizPower Corporation and the remaining in the Wholesale Electricity Spot Market or direct short-term contracts with commercial and contestable customers.
Debt financing for the project is provided by Security Bank Corporation as Lender with SB Capital Investment Corporation acting as the Lead Arranger, to fund 70% of the project cost on a limited recourse basis.
Construction will be undertaken via a lump-sum turn-key EPC contract with a consortium of PowerChina Huadong Engineering Co. Ltd and PowerChina Philippines Corporation. The construction of the project is expected to be completed by 2Q24, with commercial operations date commencing thereafter.
PowerChina Philippines Corporation will conduct operations and maintenance activities of the Project for the initial two years from the start of commercial operations before transitioning their scope to the in-house operations team of NEXIF RATCH Energy.
Matthew Bartley, Director and Interim CEO, NEXIF RATCH Energy, said: “We wish to acknowledge the efforts and support of key project stake holders in delivering on our plans to provide renewable energy to the Philippines. In particular, AboitizPower related companies, AP Renewables Inc. and Adventenergy Inc., whom we are excited to able to assist in supplying renewable energy to assist in servicing their customers, Security Bank, which has supported the project by agreeing to provide debt financing as a single lender, and Power China Philippines whom is already well advanced on their preparations to build the project.
Sakarin Tangkavachiranon, Director, NEXIF RATCH Energy, added: “We are excited to achieve the first financial close and commencement of construction of a project under the NEXIF RATCH Energy joint venture. With this project now moving to construction, it builds on our under construction/operating portfolio, which already comprises a hydro power project in Vietnam, one stage of which is operating and the other stage that is under construction. We are expecting that this financial close will soon be followed by others this year, with development and financing of projects in Vietnam and Philippines gathering pace.”
Surender Singh, Chairman, NEXIF RATCH Energy, concluded: “The start of construction of the Calabanga solar project is an important milestone in our plans to add much needed renewable energy to the Philippines. We are also making rapid progress to achieve financial close of our 150 MWp NPSI PV solar project in Negros later this year and are rapidly advancing the development of our offshore wind project pipeline in Luzon, which comprises five project concessions totalling over 200 0MW of potential wind capacity, the first of these projects targeted for financial close in 2024.”
